Suppliers say they’ll pass down Pa. fuel tax hike

By The Associated Press

November 29, 2013News Extra

HARRISBURG — Pennsylvania’s new transportation law will raise fuel taxes Jan. 1 and the companies that supply gas and diesel in Pennsylvania say razor-thin profit margins leave them little choice but to pass the entire cost increase to the pump.

John Reilly, president of Reilly & Sons in the Philadelphia suburb of Exton, says fuel distributors like his can’t just absorb the cost of doing business.

Gov. Tom Corbett and lawmakers who supported the bill have given confusing messages, including the idea that it shifts the tax burden to big oil companies that won’t pass it down.

On Jan. 1, taxes will rise by 9.5 cents per gallon of unleaded and 13 cents per gallon of diesel. In the short-term, at least, consumers are expected to see dropping gas prices this winter.